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The Droshipping Business Model

The Droshipping Business Model

Dropshipping is a model of Ecommerce where you don’t have to keep inventory of what you are selling. Basically, you only act as a middle man between the manufacturer (supplier) and the consumer (buyer). The customer places an order for the product after your advertisement efforts and you then place an order for the product to be shipped to the customer from the supplier. This is one of the most popular methods being used by many small and large scale retail companies. The likes of Amazon and eBay has a lot of dropshipping products displayed on their websites.

The major challenges of dropshipping is the delivery time and the advert costs mostly borne by the you, the dropshipper. It is also your responsibility to ensure that you are not sourcing substandard products and your supplier is not taking too much time to deliver the products to your customers as this will lead to customers dissatisfaction and eventual charge backs that would kill your business.

Most of the products you will be dropshipping will be sourced from Chinese suppliers like AliExpress and Alibaba. (AliExpress.com, Alibaba.com),this will be discussed in details in a later chapter.

Now that you’ve understood the dropshipping model, it’s now for us to look at the various platforms we can sell our products with.

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